Internap Dips into Red for Q2, But Analyst Lifts Stock Price Target

Internap, which provides Internet routing and other network services, dipped into the red in the second quarter even as revenues jumped 33 percent over the same quarter in 2006.

However, on Wednesday the company also increased its financial guidance upward for this year. And RBC Capital markets raised its target stock price for Internap (NASDAQ: INAP) to $20 from $21 a share. The analysts also reiterated its “market outperform” rating on the stock.

For the quarter, Internap reported revenues of $58.5 million, up 33 percent over 2006. It lost 3 centers per share, or $1.7 million, due in large part to an impairment charge for an investment made in 2000. In 2006, Internet reported a $700,000 report.

The company added 122 customers, lifting its total to 3,403.

Internap increased its guidance to 30-35 percent growth for this year, up from 30 percent.